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FOR IMMEDIATE RELEASE
OLDWICK - JUNE 19, 2018 08:27 AM (EDT)
A.M. Best has upgraded the Long-Term Issuer Credit Rating to “bbb+” from “bbb” and affirmed the Financial Strength Rating of B++ (Good) of Farmers Insurance Company of Flemington (FICF) (Flemington, NJ). The outlook for these Credit Ratings (ratings) remains stable.
The ratings reflect FCIF’s strong balance sheet strength, as well as adequate operating performance, limited business profile and appropriate enterprise risk management.
The rating upgrade is based on the improvement in FCIF’s risk-adjusted capitalization and continued improved operating results. FCIF enhanced its catastrophe reinsurance coverage in 2018 to further shield capital from severe events. Additionally, the company’s underwriting leverage position has improved as a result of organic surplus growth, which has outpaced premium growth over the past five years. Furthermore, FCIF continues to report favorable reserve development.
The positive rating factors are offset by the company’s limited scale and geographical diversification. A number of the company’s leverage metrics compare unfavorably with composite averages, due to the company’s unique blend of personal property and commercial business. In addition, the company maintains a somewhat elevated common stock leverage position, although the position has decreased compared to their historical averages.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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